Since 2005 when the first well in Spanish Lookout began producing, Belize National Energy (BNE) has seen its production reach almost 5,000 barrels per day. With oil prices fluctuating from as high as US$143 to a current US$83 per barrel, that's quite a fistful of dollars. The government of Belize (not to be confused with the people of Belize) has realized a little over 17% of the take. Considering the fact that some oil producing countries enjoy as much as 80 percent of revenues from their oil, the current sharing ratio from our wells leaves our representatives looking woefully inept negotiators indeed.
Compared to large oil producing countries like Saudi Arabia, Venezuela or Nigeria, Belize's find thus far is relatively small. With only slightly over 300,000 mouths to feed however, we don't need much to improve the condition of our citizens. "Much" is nowhere near what we have been receiving and most consider our share to be closer to the sum of"none".
Belize is in a unique position with many different models to learn from. In Kuwait for example, oil revenues have been used to totally eradicated hunger and poverty and has been used to finance social welfare, public works, and elaborate development programs. Among the benefits for Kuwaiti citizens are retirement income, marriage bonuses, housing loans, virtually guaranteed employment, free medical services, and free education at all levels. The Kuwaiti government occasionally disburses a portion of its budget surplus as a grant to all its citizens. In 2006, approximately $1,500, known as the Amiri grant, was made available to every citizen of Kuwait. In 2007, the government implemented a debt forgiveness scheme for all citizens amounting to just over U.S. $1 billion. That's how you share the wealth!
Belize instead, seems headed in the direction of the Nigeria model. Despite billions of dollars earned each year from the oil of that country, as many as 76% of all Nigerians are living below the poverty line. Then there exist the environmental risks. A recent report on Nigeria reveals that "Due to the many forms of oil-generated environmental pollution evident throughout the region, farming and fishing have become impossible or extremely difficult in oil-affected areas, and even drinking water has become scarce. Malnourishment and disease appear common. The presence of multinational oil companies has had additional adverse effects on the local economy and society, including loss of property, price inflation, prostitution, and irresponsible fathering by expatriate oil workers". Are we ready for this, Belize?
Interestingly enough, in 2002 when the first contracts were signed to explore for oil in Belize, the percentage of our citizens considered poor was hovering around 30 percent. Today, despite nearly a billion dollars realized from our oil, those below the poverty line has increased to almost fifty percent with another considerable amount tottering just on the brink. Many of our citizens lack basic education.
In Kuwait, the literacy rate is 94 percent as a result of extensive government support for the education system. Public school education, including university, is free. The government also sponsors the study of qualified students abroad for degrees not offered at Kuwait University.
In Belize, instead of assisting with education, Minister of that department, Patrick Faber this past week announced that of the twelve hundred scholarships to UB, only two hundred are being considered for renewal. Many of our children attend school hungry and countless others have been sent home for not being able to afford high tuition and other fees. Where is the oil money going?
According to the infamous article in the Belfast Telegraph, Irish investors have been "laughing all the way to the bank" and that "Some investors, who shared a pot of $10m, received payouts of up to $750,000". Meanwhile here in Belize, some two years after it was washed away, commuters from the South still await the replacement of the Kendall Bridge.
Interestingly enough, that very bridge was used by BNE to transport our oil to waiting barges at the port in Big Creek. Instead of offering to assist with the replacing of the bridge, which many believe could have been affected by the heavy flow of traffic from oil tankers, BNE proposed instead to erect tanks on either side of the river to avoid having to cross the bridge. How mean spirited and greedy can these individuals be?
This past Saturday, a small band of irate citizens took to streets to voice their concern. It was a noble gesture and one well worth the effort but one also, that was doomed to fail from the outset. Such an effort would have to have been spearheaded by a more objective group.
COLA, the group that organized the march is an organization conceived of hate. Originally named Citizens Organized against Lord Ashcroft, the group has its moorings behind the infamous "zinc fence", a sub-culture of Belize's Southside; well-known for their rancorous and territorial behavior. Many, who would have loved to participate, stayed away as a direct result of Kremandala's participation; they have an unsavory track record of mercenary and self-serving behavior.
The people of Belize will have to stand up for what is theirs. Some have tried to explain away Saturday's dismal showing as being just a beginning. Be that as it may, it was not a good beginning. Calling a demonstration is a risky thing. If it succeeds, you look good and your points are made but if it fails, as last Saturday's certainly did, then it suggests that the cause is not popular and that the majority is satisfied with the status quo.
The latter would certainly not be an accurate assessment of the mood of the Belizean people. Belizeans are not happy at this point. Susan Morrice, Sheila McCaffrey et al, cannot be allowed to continue their rape and pillage of our valuable resource. Andre Cho and Craig Moore cannot convince us that we are getting a fair deal and that because we are some "frontier country" that we must settle for crumbs. The oil from "frontier countries" sells for the same price as the oil from "developed countries."
We will
have to organize other marches and let our feelings be known. Maybe
the churches or the unions or Spear or some other independent
organization but no special interest group should be relied upon to
rally the public to this cause. And speaking of special
interest, it makes one wonder if this protest was meant to succeed in
the first place. Yes folks, some people do play games!
- Comments? Write to G. Michael Reid
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